GlobalFoundries announced today that the owner of the company doubled its capital expenditure in 2011. Instead of 2.5 billion, the company will invest 5 billion U.S. Dollars on "expanding its semiconductor business."

According to Ibrahim Ajami, CEO of ATIC (Advanced Technology Investment Company), ATIC decided to react to recent announcements made by Intel and TSMC and heavily invest into GlobalFoundries. In fact, the level of this investment is over 120% of overall revenue made by GlobalFoundries on their own.

To us, this announcement makes perfect sense, given the recent change in shareholding structure. Only few weeks ago, Mubadala Abu Dhabi took control over ATIC. According to information available, Mubadala owns around 20% of AMD and their subsidiary ATIC owns 86% of GlobalFoundries.

At this point in time, it is unknown if AMD is going to further divest its interest in the company or not. Bear in mind that Mubadala Abu Dhabi, sister fund of ATIC – owns over 20% of AMD themselves. One thing is certain though – Mubadala/ATIC do not plan to stop investing in semiconductor manufacturing industry anytime soon.

About the AuthorTheo Valich

Focused on creating synergy between various industries, creating next-gen solutions.Passionate about the new and emerging technologies. Work experience spans from game development and event organizing, editing magazine and on-line publications to aerospace development.Specialties: Team Leadership / Management / Technical Consultant / Funding.Enjoys travelling around the world and meeting new people. :)